It’s a common scenario: you walk into the supermarket with the intention of purchasing a loaf of bread, but end up leaving with a car full of items! You may set realistic financial goals and know how to budget your money, yet overspending is often hard to avoid. To stop overspending, you need to look at why you are doing it in the first place. To help you save your money, here are five weird reasons that people are overspending their hard-earned cash.
You skipped breakfast… When you’re hungry your body releases a wave of hormones known as leptin and ghrelin and these chemicals affect the area of your brain that is involved in decision-making. This imbalance causes you to become more inclined to take risks, especially when it comes to money. With that being said, don’t shop on an empty stomach!
You’re carrying singles… If you have $1 and $5 bills lingering in your wallet, you are more likely to spend them on little things, such as a soda from a vending machine or an impulse item at a checkout lane. On the other hand, you’re not going to want to break a $50 or $100 bill just to purchase a small item. Economists refer to this as the denomination effect.
You were social-networking… Many studies have proven that spending too much time on social network sites lowers your spending self-control. Most financial experts believe it is because these sites allow you to see the fabulous lives of all of your friends and family, and this leads to unnecessary spending so you can feel more confident about your own status.
The price ends in nine… Retail stores absolutely love to put a nine at the end of a price. Why? Customers feel as if they are getting an unbeatable deal because it is less than the number above it. After all, which sounds better $39 or $40? $9.99 or $10?
It was girls’ night out… Girls’ nights out on the town are always a blast, but when the night is over, you typically end up spending much more money than you originally anticipated. You order a nice appetizer, a delicious meal and then the drinks begin and they just don’t seem to stop! When you’re surrounded by other people who are drinking, having a good time and spending money, you are probably going to be doing the same.
Knowing the weird reasons that you are overspending is sure to help you save money, even if you have had difficulty doing so before!